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KCCI Surveys 151 Domestic Companies

Posted November. 24, 2004 22:56,   


More than half of domestic companies rated that the incumbent government’s economic measures or “corporate reforms” are not appropriate and that economic policies also tend to be “idealistic.”

According to “Business Community’s View on Policy Agenda,” a recent survey of 151 domestic companies released by the Korea Chamber of Commerce and Industry (KCCI), those of which responded “inappropriate” or “very inappropriate” to the government’s economic measures were 49.7 percent and 8.6 percent respectively, which means more than half, or 58.3 percent, have negative views on this matter. In contrast, a mere four percent answered “appropriate” to the issue.

Also, with regards to the “corporate reform,” 58.9 percent of the respondents rated it as inappropriate while those in favor fell short of six percent.

On the issue of the government’s economic policy, more than half, or 58.6 percent, of those responded said the policy was “not leftist but idealistic.” Some 30.7 percent answered “moderate,” and 8.6 percent and 2.1 percent said “leftist” and “rightist,” respectively to the question.

In addition, regarding the controversial possibility of a hostile M&A of Samsung Electronics by foreign investors, the companies that answered “definitely possible (21.7 percent)” and “hard to rule out the possibility (70.6 percent),” accounted for 92.3 percent despite the government’s argument to the contrary.

Many responded that the ceiling on equity investment by large business groups, one of the Fair Trade Law revision bills, must be eased (53.8 percent) or abolished (20.3 percent). Even as to the revision bill of cutting the voting rights of chaebol financial units in non-financial affiliates, a overwhelming majority said it should be relaxed (46.2 percent) or remain intact (34.2 percent).

When asked who needs to be changed most in order for Korea to achieve a per-capita income of $20,000, 66.0 percent pinpointed politicians, followed by public officials (22.2 percent), the public (5.5 percent), and workers (3.5 percent).

However, positive evaluations of 38.4 percent somewhat exceeded negative views (22.5 percent) over the “Korean version of the New Deal.” Concerning the initiative to utilize pension funds as economic stimulus package, 71.4 percent answered in favor conditional on transparency and safety.

Keuk-In Bae bae2150@donga.com